Dante Disparte Advocates for Enhanced Crypto Regulations
Dante Disparte, Circle’s Head of Global Policy, has made a strong case for enhanced regulatory frameworks in the cryptocurrency sector, specifically pointing to Europe’s Markets in Crypto-Assets Regulation (MiCA) as a vital model for other regions. During a discussion at the Paris Blockchain Week on April 8, alongside Ari Redbord from TRM Labs, Disparte highlighted that regulatory clarity could significantly attract more investments, as well as enhance participation from financial institutions and other stakeholders.
He posited that the legal certainties provided by MiCA could entice international investors to consider opportunities not just in France, but across the continent.
Europe’s Unique Opportunity in Digital Finance
Disparte expressed optimism that Europe has a unique opportunity to define the future of global digital money and financial services through this regulatory framework. He noted that his team has been advocating for the introduction of two specific stablecoin acts in the United States: the GENIUS Act and the STABLE Act, which he described as necessary steps to align U.S. regulations with the clarity offered by MiCA.
“When you put them together you get a Stable Genius,” Disparte stated, suggesting that a collaborative approach could lead to regulatory equivalence between the U.S. and Europe, rather than a competitive downward spiral.
He underscored Circle’s support for the MiCA framework’s classification of compliant stablecoins as e-money tokens, which includes regulations preventing these digital currencies from accruing yield for holders.
“Interest in stablecoin land is a secondary market innovation. To function effectively as intended, stablecoins must operate like traditional currencies such as the dollar or euro, serving as a unit of measure, medium of exchange, and a store of value,” he explained.
Impact of MiCA Regulations
The MiCA regulations were introduced in June 2023 and impose comprehensive rules and standards on cryptocurrency firms and stablecoin issuers, including a ban on offering interest or yield on stablecoins. Consequently, companies like Tether (USDT) and Circle have had to modify their business practices to maintain compliance in European markets. Notably, Circle became the first stablecoin issuer to receive an Electronic Money Institution license from French authorities in July 2024, enabling it to promote its MiCA-compliant stablecoin throughout Europe.
